Can I Get the EIDL Grant and Not the Loan?


Brendan Tuytel


Reviewed by


July 13, 2020

This article is Tax Professional approved


On June 15, 2020, the EIDL program reopened to all small businesses providing access to a low interest, long-term loan in addition to a grant (up to $10,000). You can apply for both on the same application, but you don’t need to take both options. Here’s a walkthrough on how to receive the grant but not the loan.

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Editor’s note: As of July 13th, the up to $10,000 EIDL Advance Grant has closed due to funds running out. We can get you caught up to apply for the EIDL loan which is still open for applications. Learn more about the EIDL loan.

The EIDL application

When applying for the EIDL, the third step (Additional Information) will have a box that will automatically be checked off. When this box is checked off, you will apply for the grant in addition to the loan itself. Email will be the way you receive all updates—double check that your email address is written down correctly, and if you don’t see anything in your inbox, check spam folders.

EIDL grant without the loan

Working on an EIDL application and unsure on some of the information being requested? Watch our walkthrough video here.

Your EIDL grant amount

The EIDL grant will be up to $10,000 based on $1,000 per employee which you will report on the Business Information section of the application itself. Only report employees that are on payroll. Independent contractors and any owners that are paid through payroll will not count towards this number. Self-employed individuals can record a zero here and still receive $1,000 from the grant.

Receiving your EIDL grant

The SBA has not been notifying recipients of the grant when the funds have been deposited into their accounts. If you’re waiting for your grant and need the funds as soon as possible, be sure to check in on the bank account you applied to have the money deposited into daily to see if you’ve received it yet. The SBA aims to have your grant to you within three business days, but there have been delays reported due to volume.

Receiving the EIDL grant does not mean you have been accepted for an EIDL loan. It is possible to be approved for the grant but not the loan.

If you receive a loan offer

You will receive your loan offer via email and will be provided with three options:

  1. Accept the loan for the full amount
  2. Accept the loan for a partial amount
  3. Reject the loan

If you only wanted the grant, this is your opportunity to confirm that your grant has hit your bank account and reject the loan offer itself. Do not reject the loan offer if you have not received your grant yet. It has been reported that a rejection of the loan may cancel your grant application.

If you’ve changed your mind and you’re open to accepting the loan for the full amount or a lesser amount than your offer, it will still be subject to the same terms of 3.75% interest (2.75% for not-for-profits) over a term of 15-30 years.

How to “reject” your loan

Bench spent some time on the phone with the SBA, and we’ve learned that the SBA system is not designed to easily handle a rejection by you, the borrower. To “reject” the loan and ensure you can receive the advance, our recommendation is to accept the EIDL offer for $1. You can use the slider on your loan offer page to select your desired amount.

Accepting the loan ensures your loan is correctly in the system and that you’re eligible for the grant. You can repay the $1 at any time with no prepayment penalties.

More COVID-19 resources

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein.
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